The Analysis of Risk Management on Syariah Banking in Indonesia

Abstract

Syariah banking in Indonesia has been developing rapidly for many years. The number of the syariah banks shows that syariah financial sector is good enough in managing the society fund. The society trust on the syariah trade cannot be separated from the existence of the syariah banking. In order to be able to manage the fund correctly, appropriately, and effectively, the syariah banking should pay attention on the risk will be faced by them. One of the harmful risks is credit. The aim of this study is to gather information on the risk management on syariah banking in Indonesia. Sample of this study is six syariah banks in Indonesia. The banks were chosen based on the purposive sampling method. The method used in this study was qualitative descriptive analysis in which the researcher presented the exploration of the findings to answer research questions. From this study, it can be concluded that the six – syariah bank observed based on the portfolio composition and concentration level of defrayal credit ratio is the biggest factor in defining the credit risk. Based on the quality of the defrayal given to the third party indicates that the syariah banks in Indonesia receive high credit risk.